Raffle Training Washington State Gambling Commission (800)

Transcription

1 Raffle Training Washington State Gambling Commission (800) GC5-016 (Rev. 4/10)

2 Regional Offices Everett (425) Tacoma (253) Spokane (509) Call the closest regional office if you have questions regarding your raffle operation

3 Unlicensed Raffles - Public Gross revenue less than $5,000 in calendar year No more than twice a year for combination of bingo/raffles/amusement games Only volunteer members selling tickets Notify law enforcement 5 days in advance Retain records for one year All proceeds to stated goals and purposes

4 Unlicensed Raffles: Members only Gross revenue less than $5,000 in calendar year Tickets sold ONLY TO MEMBERS No limit on number of raffles in calendar year Records retained for one year May raffle unopened alcoholic beverage with proper permit from Liquor Board

5 Gambling Manager Person who oversees operation of raffle and/or disbursement of funds Managers are responsible for conducting raffles within proper guidelines and ensuring all paperwork is completed Will not have to license manager for raffles except under certain circumstances

6 Use of Proceeds Gambling proceeds must be used exclusively for the organization s stated purpose. If giving proceeds directly to a particular individual, must get prior written approval from the Commission.

7 Independent Management Control Structure Required It is the responsibility of the officers and board of trustees to ensure that: Gambling activities are closely supervised and follow all rules; Proceeds go to the organization and its stated purpose; and All assets are protected from theft and misuse.

8 Requirements for Operating Environment Must reduce risk of errors Minimize risk of misuse, theft, fraud, and embezzlement; Safeguard assets; and Ensure the records and reports are complete and accurate.

9 License Sizes Class A Up to $5,000 gross receipts Class B Up to $10,000 gross receipts Class C Up to $25,000 gross receipts Class D Up to $50,000 gross receipts Class E Up to $75,000 gross receipts Class F Over $75,000 gross receipts

10 Effect of Exceeding License If it becomes apparent you will exceed your license size, IMMEDIATELY notify the Commission and upgrade to the appropriate size license. If you don t upgrade in a timely manner, there will be a fee collected for exceeding license class.

11 Joint Raffles Two or more organizations can join together; Must maintain in writing how income and expenses will be divided among them; One licensee must set up a separate bank account; All licensees must maintain raffle records.

12 Beer or Liquor/Firearms as Prizes Liquor can only be offered as a prize in unlicensed members-only raffles. Only charitable or nonprofit organizations operating a raffle may award firearms as prizes. The firearm should be awarded using a certificate from a licensed firearm dealer, not awarding the firearm directly.

13 Credit All raffle tickets must be paid for at the time of purchase using either cash, check, or credit card. Checks must be collected prior to participating in the raffle. You should develop a policy on how you will handle any NSF checks before the raffle.

14 Notification to Law Enforcement Before beginning the raffle, you must send a notice to local law enforcement in writing. You should also check with the local taxing authority for any taxes due. The first $10,000 of net proceeds is exempt from taxation (RCW ).

15 Changes in management and criminal history Changes to the raffle manager must be reported within 30 days. Changes in officers will be reported with the renewal application. If any criminal or civil charges are brought against officers or manger, must report within 30 days of the action being filed.

16 Inspection of Premises, Records, and Devices All records must be available for our review or audit. All records must be complete by thirty days following the drawing.

17 Display of License and Rules Manual Have the original or a copy of the license displayed at the location where the drawing will be held. A current copy of the rules manual must be available at the site of the drawing and made available to anyone who may ask to refer to it, including Commission staff.

18 Who Can Sell Your Tickets Only members of the organization or volunteers under the supervision of a member may sell tickets.

19 Control of Prizes Merchandise prizes must be paid for in full prior to the drawing. Cash prizes must be available at the time of the drawing either in cash or check.

20 Manner of Conducting a Raffle You may not charge more than $100 to enter a raffle drawing. All tickets must be consecutively numbered. If the winner is not required to be present to win, there must be a detachable stub to include name, address, and telephone number.

21 What must be on a ticket* *or available at point of sale Cost per chance Date, time, and location of drawing Name of the organization Whether you need to be present to win Description of all prizes All rules by which prizes may be won in the raffle

22 Free Tickets and Incentive Awards No raffle tickets can be given away NON-CASH incentive awards for ticket sales are allowed as long as: Awards are based on the number of tickets sold FMV of total incentive prizes does not exceed 5% of gross gambling receipts of the raffle

23 Sale of Discounted Tickets Use only one discount plan per raffle and do not change it. You must create the discount plan before selling any raffle tickets. You must be licensed to conduct the raffle. You must make single non-discounted tickets available to all participants.

24 Discounted Tickets (cont) Discounted tickets must be bundled into booklets containing a prescribed number of tickets for the discount scheme. Tickets put into these booklets may not be sold individually. The booklet cover will be imprinted with the discount scheme.

25 Random Drawing All tickets must be placed into a receptacle for the drawing in such a way that each ticket has an equal opportunity of being drawn.

26 Alternative Drawing Formats Must ALWAYS have a license before conducting an alternative drawing format Licensees may use the following types of alternative drawing formats: Mock races, poker runs, ball drops, animal plops, multiple stage drawings, bucket raffles, and calendar raffles

27 Licensed Members-Only Raffles Applicable as long as only members and no more than 25% guests are sold chances. All aspects of the raffle must take place during the same event at the same location.

28 Record Keeping A separate gambling account is required for Class E and above licensees. If you already have a separate gambling account for other activities such as bingo, use that for raffle income also. All receipts must be deposited in the gambling receipts account at least weekly for Class E and above.

29 Raffle Records - low volume Class A-D and unlicensed raffles must keep monthly records of the following: Gross receipts; and Prizes paid; and Net income; and Documentation of expenses; and Documentation of how proceeds were used

30 Raffle Records High Volume and Alternative Format Class E-F and any raffle using an alternative drawing format must prepare detail records: Record all data required in the standard format we provide Maintain validated deposit receipts for each deposit of raffle proceeds; and All ticket stubs for raffles that participants are not required to be present at the drawing; and All winning raffle tickets

31 Ticket Distribution Log RAFFLE TICKET DISTRIBUTION LOG Licensee: Date of Drawing: Total Tickets Printed: (1) (-) (2) (=) (3) Name Phone Number Ticket Numbers Issued Total Tickets Issued Total Tickets Returned or Unsold Ticket Numbers of Returned or Unsold Tickets Total Tickets Sold Funds Received From Seller $ UNISSUED TICKETS TOTALS $

32 Raffle Records (cont.) A description of each prize including the cost or FMV of donated prizes Name, address and telephone number of each winner of prizes valued at over $20

33 Record of Winners RAFFLE WINNERS REGISTER Licensee: Date of Raffle:, For prizes with a cost or fair market value in excess of $20: Name, Address & Phone # of Winner Description of Prize (Indicate If Donated) Purchase Price or Fair Market Value Amount Winning Ticket Numbers (1) $ ( ) ( ) ( ) ( ) ( ) ( ) For prizes with a cost or fair market value of $20 or less: Number Awarded Description (1) Attach Winning Tickets To Prize Summary. (2) Record Total Prizes Paid On The Raffle Summary. Total Prizes Paid $ (2)

34 Raffle Summary Validated deposit receipt All winning tickets All losing ticket stubs if winner not required to be present to win All unsold tickets if the gross receipts will be more than $5,000 Invoices for purchase of tickets,prizes or other expenses

35 Raffle Summary WASHINGTON STATE GAMBLING COMMISSION RAFFLE SUMMARY Licensee: Date Of Drawing: 1. Reconciliation Of Ticket Sales (-) (+) 1 (-) (=) Ending Ticket # Beginning Ticket # # of Returned Tickets Total Tickets Sold 2. Activity Summary Price Gross Receipts: Total Tickets Sold X Per Ticket $ = $ Less Prizes Paid (See Winners Register)... (-) Equal Net Receipts... = Expenses: License Fees.... Local Taxes.... State Taxes... Equipment Rental... Advertisement... Cash (Over) / Short (A)... Other... $ Total Expenses... Net Income... $ 3. Other Required Information: (A) (B) $ Cash (Over) / Short: Gross Receipts $ (-) Total Amount Deposited (B) (=) $ Explanation of Cash (Over) / Short: Schedule of Deposits: Date Amount Date Amount $ $ Subtotal From Attached Schedule (If Needed)... $ Total Amount Deposited Attach Deposit Slips... $ / Manager Date Preparer Date

36 Records Completion and Retention All records must be completed no later than 30 days following the drawing. Records for licensed raffles must be kept for 3 years from the end of the licensees fiscal year in which the raffle was completed.

37 Custody of Records Records must be maintained in the main administrative or business office located within Washington state. Organizations that do not have an administrative or business office must have and designate a records custodian that resides in Washington.

38 Prize Inventory Control Record All items purchased as gambling prizes must be accounted for on a form indicating: Description and quantity of prizes Per unit cost Date purchased, vendor name and invoice Date, # of items removed and reasons for removal from inventory

39 Inventory Control Log WASHINGTON STATE GAMBLING COMMISSION Prize Inventory Control Record (Form 1) Licensee: Purchased/Donated Merchandise for Prizes: Description: Vendor/Donor Name: Invoice Number: Invoice Amount: Price/Fair Market Value Per Item: Date Purchased/Received: Number of Items: Cumulative # of Date Issued # of Items Issued Items Remaining Reason for Inventory Removal Note: This form should be used to track a large quantity of identical items purchased for prizes. For various items, use Form 2.

40 Annual Activity Report Thirty days before your raffle license expires, you will receive an activity report Complete and return the activity report before the due date Be sure to get all necessary information to the raffle manager so the paperwork can be completed

41 Good luck on your raffle!!! Further instructions or review, see the on-line training at: